A cryptocurrency or cryptocurrency (Saxon cryptocurrency) is a virtual currency used to exchange goods and services through an electronic transaction system without having to go through an intermediary. The first cryptocurrency to start trading was Bitcoin in 2009, and many others have emerged since then, with other features such as Litecoin, Ripple, Dogecoin and others.
What is the advantage?
When comparing a cryptocurrency with money on a slip, the difference is that:
They are decentralized: they are not controlled by the bank, the government and any financial institution
They are anonymous: your privacy is protected when conducting transactions
They are international: everyone operates with them
They are safe: your coins are yours and are never kept in a personal wallet with non-transferable codes that only you know
No intermediaries: transactions are performed from person to person
Fast transactions: interest is charged for sending money to another country and confirmation days are often required; with cryptocurrencies just minutes.
Bitcoin and any other virtual currency can be exchanged for any world currency
They cannot be faked because they are encrypted with a sophisticated cryptographic system
Unlike currencies, the value of electronic currencies is subject to the oldest rule of the market: supply and demand. “It currently has a value greater than $ 1,000 and like inventory, this value can increase or decrease supply and demand.
What is the origin of Bitcoin?
Bitcoin is the first cryptocurrency created by Satoshi Nakamoto in 2009. He decided to launch a new currency
Its special feature is that you can perform operations only within the network.
Bitcoin refers to both the currency and the protocol and the red P2P it relies on.
So, what is Bitcoin?
Bitcoin is a virtual and intangible currency. That is, you cannot touch any of its forms as with coins or banknotes, but you can use it as a means of payment in the same way as these.
In some countries, you can redeem through an electronic debit card site that exchanges money with cryptocurrencies such as XAPO. For example, in Argentina we have more than 200 bitcoin terminals.
Undoubtedly, what distinguishes Bitcoin from traditional currencies and other virtual means of payment such as Amazon coins, Action Coins, decentralization. Bitcoin is not controlled by any government, institution, or financial entity, whether public or private, such as the euro, under the control of the Central Bank or the dollar by the United States Federal Reserve.
In Bitcoin, they control real, indirectly through their transactions, users through P2 P (Point to Point or Point to Point) exchanges. This structure and lack of control make it impossible for any body to manipulate its value or cause inflation by producing a larger amount. Its production and value are based on the law of supply and demand. Another interesting detail in Bitcoin has a limit of 21 million coins, which will be reached in 2030.
How much is Bitcoin worth?
As we pointed out, the value of Bitcoin is based on supply and demand, and is calculated using an algorithm that measures the amount of transactions and transactions with Bitcoin in real time. Currently, the price of Bitcoin is $ 9,300 (as of March 11, 2018), although that value is not much less stable and Bitcoin is classified as the most volatile currency in the foreign exchange market.